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magnum69
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Is the North Carolina Video Services Tax deductible on Federal returns?

 
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ToddL
New Member

Is the North Carolina Video Services Tax deductible on Federal returns?

The North Carolina Video Services Tax is deductible as a  state/local sales taxes.
It is not deductible as a state/local income tax .

If you itemize deductions on Schedule A, Form 1040, you can claim a deduction for state/local income taxes, OR state/local sales taxes (if higher than your state/local income tax). 

The North Carolina Video Services Tax is a sales tax. From the NC DOR website, "Gross receipts derived from providing video programming to a subscriber in North Carolina are subject to the 7.00% combined general rate of sales and use tax."

In order to claim a deduction for the North Carolina Video Services Tax, you would have to claim the sales tax deduction (instead of income tax deduction) and you would have to enter actual sales tax receipts for your 2015 purchases (i.e. not use the EasyGuide calculator in TurboTax). 

See the following post for a discussion on how to enter your sales tax deduction:

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2 Replies
ToddL
New Member

Is the North Carolina Video Services Tax deductible on Federal returns?

The North Carolina Video Services Tax is deductible as a  state/local sales taxes.
It is not deductible as a state/local income tax .

If you itemize deductions on Schedule A, Form 1040, you can claim a deduction for state/local income taxes, OR state/local sales taxes (if higher than your state/local income tax). 

The North Carolina Video Services Tax is a sales tax. From the NC DOR website, "Gross receipts derived from providing video programming to a subscriber in North Carolina are subject to the 7.00% combined general rate of sales and use tax."

In order to claim a deduction for the North Carolina Video Services Tax, you would have to claim the sales tax deduction (instead of income tax deduction) and you would have to enter actual sales tax receipts for your 2015 purchases (i.e. not use the EasyGuide calculator in TurboTax). 

See the following post for a discussion on how to enter your sales tax deduction:
magnum69
New Member

Is the North Carolina Video Services Tax deductible on Federal returns?

Thank you!
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